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Stanley Electric Co Ltd (JP:6923)
:6923
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Stanley Electric Co (6923) AI Stock Analysis

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JP:6923

Stanley Electric Co

(6923)

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Outperform 78 (OpenAI - 4o)
Rating:78Outperform
Price Target:
¥3,486.00
▲(14.03% Upside)
Stanley Electric Co's strong financial performance is the most significant factor, supported by solid technical indicators and a fair valuation. The company's robust financial health and positive market momentum contribute to a favorable stock score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong demand for Stanley Electric's products, enhancing its competitive position and market share.
Profitability Margins
Improved profitability margins reflect effective cost management and pricing power, contributing to sustainable financial performance.
Balance Sheet Health
A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth.
Negative Factors
Free Cash Flow Decline
A significant decline in free cash flow may indicate potential liquidity challenges, affecting the company's ability to fund operations and growth initiatives.
Liquidity Management
Challenges in liquidity management could constrain operational flexibility and limit the company's ability to respond to market opportunities or disruptions.
Operational Cash Flow
While operational cash flow is robust, the decline in free cash flow suggests that capital expenditures or other cash uses may be straining liquidity.

Stanley Electric Co (6923) vs. iShares MSCI Japan ETF (EWJ)

Stanley Electric Co Business Overview & Revenue Model

Company DescriptionStanley Electric Co., Ltd. is a leading manufacturer of automotive lighting and electronic components, primarily serving the automotive industry. Founded in Japan, the company is known for its innovative solutions in lighting technologies, including LED headlights, signal lamps, and other automotive lighting systems. Additionally, Stanley Electric operates in sectors such as industrial lighting and residential lighting, providing a diverse range of products that enhance safety and visibility in various applications.
How the Company Makes MoneyStanley Electric generates revenue through the sale of automotive lighting products and electronic components. The company primarily earns money by supplying original equipment manufacturers (OEMs) and aftermarket customers with high-quality lighting solutions and electronic devices. Key revenue streams include contracts with major automotive manufacturers for the development and production of custom lighting systems, as well as sales of standard products through distributors and retailers. Strategic partnerships with automotive companies and collaborations in research and development further enhance their market position and contribute to earnings, allowing them to innovate and meet evolving industry standards.

Stanley Electric Co Financial Statement Overview

Summary
Stanley Electric Co exhibits strong financial health with consistent revenue growth and improved profitability margins. The company maintains a solid balance sheet with low leverage and high equity ratios, despite a decline in free cash flow.
Income Statement
89
Very Positive
Stanley Electric Co shows strong financial performance with consistent revenue growth, evidenced by a revenue increase from 472.4 billion to 509.6 billion yen, marking a growth rate of 7.9%. The gross profit margin improved to 20.7%, and the net profit margin rose to 6.3%, indicating enhanced profitability. Furthermore, the EBIT and EBITDA margins increased to 9.6% and 19.1%, respectively, showcasing strong operational efficiency.
Balance Sheet
85
Very Positive
The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.09, reflecting conservative leverage. An increase in total assets to 749.6 billion yen and a high equity ratio of 64.8% underscore financial stability. Additionally, the return on equity stands at 6.6%, indicating effective management of shareholder investments.
Cash Flow
82
Very Positive
Stanley Electric Co's cash flow statement demonstrates robust operational cash flow, with a strong operating cash flow to net income ratio of 2.08. However, free cash flow decreased from 38.5 billion to 22.8 billion yen, a decline of 40.7%, suggesting potential challenges in liquidity management. Despite this, the company maintains a healthy free cash flow to net income ratio of 0.71, ensuring adequate cash generation.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue507.96B509.56B472.40B437.79B382.56B359.71B
Gross Profit105.88B105.67B82.89B81.27B70.88B74.97B
EBITDA90.21B97.13B72.88B86.68B72.18B71.19B
Net Income31.39B32.06B26.50B26.50B21.45B22.92B
Balance Sheet
Total Assets741.63B749.61B708.26B629.61B585.38B541.02B
Cash, Cash Equivalents and Short-Term Investments214.54B219.61B198.64B173.41B150.75B138.58B
Total Debt44.45B44.58B14.28B14.17B12.58B12.72B
Total Liabilities154.66B150.70B118.90B93.48B96.42B96.37B
Stockholders Equity479.31B485.89B524.80B476.64B434.94B399.63B
Cash Flow
Free Cash Flow0.0020.95B38.45B40.01B7.98B15.45B
Operating Cash Flow0.0066.58B65.55B76.28B36.88B46.64B
Investing Cash Flow0.00-64.87B-31.56B-56.43B-20.26B-41.65B
Financing Cash Flow0.00-19.97B-25.95B-3.82B-13.48B-13.02B

Stanley Electric Co Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3057.00
Price Trends
50DMA
3034.99
Positive
100DMA
2956.78
Positive
200DMA
2790.18
Positive
Market Momentum
MACD
-7.25
Positive
RSI
52.01
Neutral
STOCH
64.96
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6923, the sentiment is Positive. The current price of 3057 is above the 20-day moving average (MA) of 3053.80, above the 50-day MA of 3034.99, and above the 200-day MA of 2790.18, indicating a bullish trend. The MACD of -7.25 indicates Positive momentum. The RSI at 52.01 is Neutral, neither overbought nor oversold. The STOCH value of 64.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6923.

Stanley Electric Co Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
¥399.71B14.836.37%2.83%4.86%10.95%
77
Outperform
¥135.25B9.933.53%0.29%9.87%
75
Outperform
$652.58B14.077.20%2.41%-0.73%88.36%
74
Outperform
€46.30B8.148.46%2.93%-6.35%18.49%
73
Outperform
¥106.63B16.063.61%1.77%117.03%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
51
Neutral
¥16.66B-64.433.11%-8.63%-55.68%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
JP:6923
Stanley Electric Co
3,057.00
589.44
23.89%
JP:7276
Koito Manufacturing Co
2,271.50
379.25
20.04%
JP:7244
Ichikoh Industries,Ltd.
486.00
98.13
25.30%
JP:7266
Imasen Electric Industrial Co., Ltd.
839.00
358.13
74.48%
JP:7283
Aisan Industry Co., Ltd.
2,193.00
908.76
70.76%
JP:7287
Nippon Seiki Co., Ltd.
2,091.00
1,099.69
110.93%

Stanley Electric Co Corporate Events

Stanley Electric Completes Significant Treasury Stock Purchase
Oct 1, 2025

Stanley Electric Co., Ltd. announced the completion of a treasury stock purchase, acquiring 18,429,000 shares for approximately 55.8 billion yen. This move is part of a broader plan approved by the Board of Directors to repurchase up to 35 million shares, aiming to enhance shareholder value and optimize capital structure.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3500.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric and Mitsubishi Electric Mobility Amend Joint Venture Timeline
Sep 26, 2025

Stanley Electric Co., Ltd. and Mitsubishi Electric Mobility Corporation have announced an amendment to the effective dates of their joint venture agreement for a lamp system business targeting next-generation vehicles. This change, moving the dates to January 2026, aims to ensure a solid foundation for business operations and a smooth launch of the integration, with the impact on company performance to be disclosed once determined.

The most recent analyst rating on (JP:6923) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Enhances Shareholder Returns with Treasury Stock Purchase
Sep 3, 2025

Stanley Electric Co., Ltd. announced the purchase of 18,102,500 shares of its own stock for approximately 54.8 billion yen through the ToSTNeT-3 system. This move is part of a broader strategy to enhance shareholder returns and improve capital efficiency, with further market purchases planned under a discretionary trading agreement.

The most recent analyst rating on (JP:6923) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Announces Treasury Stock Repurchase Plan
Sep 2, 2025

Stanley Electric Co., Ltd. has announced a strategic move to repurchase part of its treasury stock through the Tokyo Stock Exchange’s off-auction own share repurchase transaction system, ToSTNeT-3. This decision, resolved by the Board of Directors, aims to optimize the company’s capital structure and potentially enhance shareholder value, with a purchase limit set at 18,102,500 shares or up to 54.8 billion yen.

The most recent analyst rating on (JP:6923) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric’s Treasury Stock Purchase Status Update
Sep 1, 2025

Stanley Electric Co., Ltd. announced that it did not purchase any treasury stock during the designated period from August 1 to August 31, 2025, despite having a board resolution to buy up to 35 million shares. This decision to refrain from purchasing shares could impact the company’s stock market strategy and shareholder value, as the planned buyback was intended to enhance share value and optimize capital structure.

The most recent analyst rating on (JP:6923) stock is a Hold with a Yen2700.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Reports No Treasury Stock Purchases in July
Aug 1, 2025

Stanley Electric Co., Ltd. announced that it did not purchase any treasury stock during the period from July 1, 2025, to July 31, 2025, despite having a board resolution to buy up to 35 million shares. This decision may impact the company’s financial strategies and shareholder value, as the planned share repurchase was intended to enhance shareholder returns.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Co. Reports Decline in Q1 Profits
Aug 1, 2025

Stanley Electric Co., Ltd. is a Tokyo-listed company specializing in the production of automotive equipment, electronic components, and applied electronic products, known for its innovative lighting solutions in the automotive industry.

Stanley Electric Co. Reports Q1 FY2026/3 Financial Results Amid Tariff and Forex Challenges
Jul 31, 2025

Stanley Electric Co. reported a slight decline in both net sales and operating income for the first quarter of FY2026/3, attributed to US tariffs and foreign exchange fluctuations. Despite these challenges, the results slightly exceeded forecasts. The Asia-Pacific market, particularly in two-wheel vehicles, remained strong, while China faced a decline in sales due to a challenging operating environment, though income margins improved through rationalization efforts.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3200.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Completes Treasury Stock Disposal with Adjustments
Jul 31, 2025

Stanley Electric Co., Ltd. has completed the payment process for the disposal of treasury stock as restricted stock compensation to its executive officers, operating officers, employees, and directors of its domestic subsidiaries. The company announced changes to the number of shares and total value due to partial forfeiture, but these changes are not expected to impact the current fiscal year’s results.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3400.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric and Mitsubishi Electric Mobility Finalize Joint Venture for Next-Gen Vehicle Lamp Systems
Jul 31, 2025

Stanley Electric Co., Ltd. and Mitsubishi Electric Mobility Corporation have finalized an agreement to establish a joint venture for lamp systems in next-generation vehicles. This integration involves an absorption-type company split, with effective dates in October 2025, aiming to enhance their market position in the automotive lighting sector.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3200.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Stanley Electric Reports Decline in Q1 2025 Financial Results
Jul 31, 2025

Stanley Electric Co., Ltd. reported a decline in its financial performance for the three months ended June 30, 2025, with net sales and profits showing a year-on-year decrease. The company experienced a significant drop in profit attributable to owners of the parent, which fell by 58.4% compared to the same period in the previous year. Despite the challenging financial results, the company has not revised its financial forecast for the fiscal year ending March 31, 2026, indicating a cautious yet stable outlook.

The most recent analyst rating on (JP:6923) stock is a Buy with a Yen3200.00 price target. To see the full list of analyst forecasts on Stanley Electric Co stock, see the JP:6923 Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 23, 2025